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Content quotas for streaming platforms will give the Australian screen economy a fighting chance in the global market, according to analysts.
The media industry is prepared for the launch of the Australian content obligation and recognises how local stories impact at scale.
Under the proposed legislation, platforms with more than one million subscribers, such as Netflix, Disney+ and Paramount+, will have to commit 10% of their total Australian revenue expenditure or 7.5% or their local revenue into Australian-made content.
This holds streaming platforms to a similar standard to, and builds upon existing government-mandated quotas for commercial TV.
Under transmission quotas set out in the Broadcasting Services Act 1992, networks are required to deliver 55% of Australian content between 6 am and midnight on primary channels and 1,460 hours of Australian content between 6 am and midnight on non-primary channels.
Liana Dubois, managing director ANZ for Entertainment Partners, said the legislation will “future-proof” the Australian screen economy.
She said the obligation “injects a certainty” that safeguards the economy, helping drive growth and expanding jobs for the Australian screen sector. This will help build confidence in the industry.
“It injects certainty into the system, shoring up local commissions, jobs and ultimately brings more confidence to invest at scale,” she told AdNews.
“Local stories drive culture and that drives commercial results. Streamers win through audience loyalty, advertisers win through relevance, consumers win through resonance and the whole ecosystem lifts.
“It’s fuel for Australia’s creative economy and a means of protecting cultural relevance, industry capability and creative sovereignty.”
She links the cultural value of investing in local content, with its financial pay-offs.
Streaming audiences will continue to grow as they increasingly see themselves represented on a global stage, according to Dubois.
And quotas ensure that streaming platforms and advertisers now have the backing to turn the Australian screen industry into more than just a cheaper shoot location or beautiful backdrop, but a driver of global profit and creative impact.
“We can turn Australia into the most agile, future-proof creative economy in the world,” said Dubois.
“One where global giants source stories here, advertisers tap the power of local culture to drive attention and growth, and the streamers embed Australia as a creative engine, well beyond being a beautiful location on a map.
“Strong stories drive strong economics. If we modernise the framework now, we unlock a high-growth export industry built on talent, creativity, and cultural currency.”
A big question once the legislation passes, is how the government will ensure streaming giants aren’t cutting corners. This could look like pushing certain content over Australian others in the algorithm. And then there is the question of what passes as “Australian content”.
The understanding is that the quota is for “local stories”, with the investment going towards “new local drama, children’s, documentary, arts and educational programs”, according to a statement released by the Albanese Government.
Dubois underscored the need for “radical transparency”.
“We need a modern, fit-for-purpose framework that recognises how content is actually made, distributed and monetised today,” she said.
“That means partnership between government, industry, and global and local players. It also means radical transparency.”
She calls the quotas a positive step forward. However, she questions how it will be regulated against the existing investment.
“These changes are a very well-received step in the right direction,” she said.
“In time, they will require further clarity in terms of: How does current investment compare to proposed new requirements? What is the governance model? Who audits compliance? How do we publicly track and celebrate the cultural and commercial return? A modern framework won’t just lift the industry; it will lift the entire market that relies on culture to create demand.”
Amazon Prime Video, Disney+, Netflix, Paramount+ and Stan invested a total of $341.5 million in Australian content in the 2023–24 financial year, according to figures supplied to the Australian Communications and Media Authority (ACMA).
This included 1,527 commissioned, co-commissioned or acquired “Australian” programs.
This is up 5.3% from the previous financial year.
Qualifiers for “Australian programs” met the minimum requirements for key creative roles. This included having Australian producers, directors, writers and cast.
Paramount+, which will be subject to the new streaming quotas, said the platform has already taken initiative to work with the government to deliver local content to audiences.
"Paramount is committed to bringing local stories to all Australians,” said a spokesperson for Paramount+.
“We have proactively engaged with multiple governments over many years on how to ensure there is a sustainable pipeline of local content, across genres and formats, available to our audience.”
It looks forward to reviewing the new rules and ensuring they are equitable and sustainable for streaming platforms and services.
“Despite the ongoing and demonstrable commitment to our investment in local productions - as evidenced by the annual industry data we voluntarily provide to the Australian Communications and Media Authority - the government has elected to move forward with regulation.
“We look forward to reviewing the details of the proposed local content requirement when it is available to ensure the rules that will apply to streaming services are fair, equitable and guarantee a sustainable and viable screen industry for all players."
Netflix and Disney+ are not commenting.
National public broadcaster, SBS, known for its focus on Australian content through its multicultural approach to programming, says it supports the initiative.
“SBS notes the Federal Government’s proposed new Australian screen content requirements for streaming services.
“As a national public broadcaster, SBS is not subject to these obligations, but supports measures that will create growth opportunities for the local screen sector and lead to more diverse and innovative storytelling that reflects contemporary Australia.”
Screen Producers Australia CEO Matthew Deaner calls the legislation “a very important step forward”.
He said the legislation is long overdue and will level the playing field for the Australian production sector, giving the local industry a fighting chance to have its stories and culture shared on the global platforms.
“This is really significant for the Australian screen industry and it’s something that has been worked upon by SPA and many others for over a decade,” said Deaner.
“To get to this point, the journey has been rife with delays, complications and global challenges. And as the streaming platforms have become more and more powerful, this challenge has only gotten bigger.
“Australia is a small, English speaking nation in which the challenge of creating local content is significant.
“And as that significant challenge has grown, Australian audiences have found it harder and harder to find the stories of themselves on their screens.
“We need a cultural mandate and support from the government if we're to be able to continue to tell our stories and share them with the world.
“While we know that this legislation doesn’t solve every challenge for our sector, it’s a very important step forward.”
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